Top 4 Mistakes to Avoid When Purchasing a Car When looking for a new vehicle, the best thing you can do for yourself is to be prepared. So, here are the top 4 mistakes to avoid when shopping for your next vehicle: Considering Monthly Payments Few customers walk into Authorized Car Dealers and Showrooms intending to write a check or pay cash for their vehicle, and salespeople are well aware of this. Many of them, in fact, rely on this fact in their sales pitch. This also explains why the negotiation nearly usually focuses around how much you can afford to pay each month for the car. However, focusing on a monthly budget is by far the simplest way to overspend on your next automobile. When it comes to pricing negotiations, the dealer may do a variety of things to make practically any vehicle suit your budget. They can do this by reducing the interest rate, offering you a longer loan term, or restructuring the finance in such a way that the payment fits into your budget. It may not appear to be a significant concern, but even a few extra percentage points or an extra year on the loan can add thousands of dollars to the final cost of the vehicle. Purchasing New vs. Used A vehicle is not, at least, not a good investment. Vehicles lose value quickly, so when you acquire a new vehicle, you should expect it to lose value from the moment you take ownership. In fact, the value of a new car might drop by 25% in the first year. The greatest thing you can do is let someone else bear the first financial burden by purchasing a slightly used automobile that is a year or two old. Years ago, there was a compelling reason to buy new: the warranty. Most automobiles now have longer warranties that can be extended even if you buy a car that is a few years old. You may even choose to buy an extended warranty, which is usually significantly less expensive than the value of the car lost in the first year or two. Making a Mistake in Vehicle Selection Are you a single individual who relies on a car to commute to and from work each day? Then you probably don't need that $45,000 SUV with eight seats and a 5,000-pound towing capacity. You want a car that is tailored to your individual requirements. There are plenty of automobiles and trucks that will turn heads, but keep in mind that many of them will cost a lot of money. Other Costs Aren't Taken into Account The physical cost of the vehicle is essential, but all of the hidden long-term maintenance and auto insurance expenditures that come with it are typically disregarded. Keep in mind that auto insurance premiums rise in tandem with a vehicle's value, so purchasing a more expensive vehicle will result in higher annual insurance expenses. This can cost hundreds, if not thousands, of dollars per year. You must also account for all maintenance fees in addition to insurance. Oil changes, new brakes, air filters, tyres, and other maintenance are all required for vehicles. Luxury or performance models will almost always necessitate higher-end replacement parts, which can be significantly more expensive than their ordinary counterparts. Finally, you should think about gas use. The average person drives 10,000 to 17,000 miles each year. With today's gas prices, you should expect to pay between $844 and $1,435 per year on gas alone for a vehicle that gets an average of 30 miles per gallon. Consider a car that gets just approximately 15 miles per gallon. You now spend between $1,689 and $2,871 each year.